Thomas S. Fitzpatrick and Joshua S. Grossman Successfully Pursue Corporate Indemnification Action in Delaware Chancery Court

June 10, 2005 - Boston, MA
For more information contact: Joanne Thorud
(617) 589-3894; jthorud@davismalm.com

Thomas S. Fitzpatrick and Joshua S. Grossman successfully pursued a corporate indemnification case brought in the Delaware Chancery Court on behalf of the former CEO and director of a Delaware corporation headquartered in Massachusetts. Our client had been a defendant in a Federal District Court action which included claims for fraud, breach of contract, breach of warranty, breach of fiduciary duty, unjust enrichment and violation of M.G.L. Chapter 93A. After mounting a vigorous defense, Mr. Fitzpatrick obtained a stipulation of dismissal with prejudice of that action. Mr. Fitzpatrick and Mr. Grossman then made demand upon the Delaware corporation, pursuant to 8 Del. C. § 145(c), for indemnification of our client's legal expenses in the Federal District Court action. The corporation refused and rejected the demand. After Mr. Fitzpatrick and Mr. Grossman commenced an action under the statute in the Delaware Chancery Court, however, the corporation agreed to pay, and has paid, our client's legal fees in both the original Federal District Court action and the suit brought in Delaware.

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